Profs. Zywicki and Miller have co-authored a soon-to-be published study, “The Effects on Consumers from Two State-Level Regulations of the Payday Loan Market,” in which they analyzed 15.6 million storefront payday loans made to 1.8 million unique borrowers in 2013 to determine whether the number of loans a consumer takes in a year is a meaningful assessment of consumer welfare. They explain how the results of their analysis demonstrates that the CFPB’s prohibition on more than six loans a year in its payday loan rule was arbitrary and did not represent a reasonable consumer protection policy. They also discuss their expectations for how the CFPB under Director Chopra is likely to approach payday and other small dollar loans and respond to criticism of their study by consumer advocates.

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